Subscribe to our newsletter and stay informed

Check out our list of top companies

Check out our carefully compiled lists of the most relevant and impactful companies within their fields.

Check out our list of top unicorns

Read and learn about the biggest companies that various countries have produced, how they made it, and what the future looks like for them.

Super Micro's Stock Dives 18% on Revenue Miss

Super Micro Computer faced an 18% stock plunge Wednesday morning, despite revising its top-line guidance upwards
May 1, 2024

Super Micro Computer experienced an 18% drop in its shares on Wednesday morning after slightly missing third-quarter revenue estimates, despite increasing its top-line guidance. Although the company's reported revenue of $3.85 billion fell short of analysts' expectations, its adjusted earnings of $6.65 per share surpassed estimates of $5.78 per share.

Despite this minor setback, Super Micro Computer raised its fiscal 2024 revenue forecast to between $14.7 billion and $15.1 billion, exceeding analysts' expectations of $14.6 billion. 

Investors had been optimistic about Super Micro's potential, particularly in light of its competition with major companies like Dell and Hewlett Packard Enterprise, as a leading server vendor for Nvidia, whose GPUs are crucial for running powerful AI models. In 2023, the company's stock surged by 246%, and it joined the S&P 500 in March. Despite the recent drop, its shares are still up approximately 150% this year.

Bank of America analysts maintained their buy rating on Super Micro, although they slightly lowered their price target to $1,090. They expressed confidence in the company's future, highlighting its favorable guidance and capacity to meet demand from various chip makers beyond Nvidia.

JPMorgan analysts, who rated the stock as overweight with a price target of $1,150, lauded Super Micro's business outlook and expressed optimism about its continued revenue momentum. However, they raised concerns about the company's willingness to sacrifice margins and its potential need for additional capital raises.

Wells Fargo analysts, maintaining an equal weight rating on Super Micro stock, adjusted their price target from $960 to $890, while Barclays analysts retained a neutral rating and increased their price target from $961 to $1,000.

Despite the recent revenue miss, Super Micro maintains a competitive edge according to Barclays analysts, who emphasized the company's strong supply chain position.

More about:  |

Last related articles

chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram